The IPTV Bundle

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The IPTV Bundle
Matthew Marnik December, 2005
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The Typical IPTV Bundle
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Ask Yourself

• At the same price level, is there anything on the
  last slide that would make you
• Make a 4 hour window available for a telco
  installer?
• Compel you to spend more than you already do on
  TV services?
• Dump your cable or satellite service?

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What Will Drive Adoption?

• Door 1 A margin-destroying price war as the
  industry commoditizes
• Door 2 Sticky and unique value-added services
  that enhance service utility, and drive and
  increase ARPU

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Looking Forward
The Integrated Future of Broadband Services

• Integrated Communication Entertainment services
• The intersection of any of these domains creates
  new services opportunities
• Increases services value
• Increase customer loyalty
• Increases ARPU

Web and PC on TV
Video on PC
ICE
VOIP MCS
New integrated services represent the real
opportunity for service providers to
differentiate their offer
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A Methodology For Evaluating Services

• Use a multi-attribute preference model
• Put all the service ideas on the table regardless
  of your personal favorites
• Identify the relevant factors that would make the
  service attractive, for example
• Premium pricing potential
• Niche vs. mass market
• Technical readiness,
• Uniqueness of service
• Sustainability of competitive advantage
• Whether other services depend on the existence of
  the service considered)
• Then rate each service numerically along these
  dimensions
• Then apply a relative importance score to each
  dimension
• Run a SUMPRODUCT function, and sort now you
  have a prioritized list of services

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Example Applications with Premium Pricing
Potential
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Service ExampleNew Ways to Communicate

• Photo sharing
• Grandma likes to see photos of her grandchildren
  but doesnt own a PC
• Her children subscribe to a broadband service and
  send the photos to Grandmas STB
• Grandma gets notification and selects slideshow
  on her remote control toview the photo on her
  television
• Chat line
• While watching a popular television show, viewers
  can comment during the show using VoIP and
  instant messaging

This is so lame!. Lets go eat!
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White Paper

• Part 2 in the BSF IPTV series
• Overview (non-exhaustive) covering
• Subscription music
• Gaming
• Video conferencing
• Home monitoring
• Hiberdating
• Hypercontent

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The 2 Minute Drill for Telcos

• Video is the baseline starting point, and is not
  enough by itself
• Seek a comprehensive set of rich services that
  add to ARPU
• Seek service partners that can reduce complexity
  and speed to time to market
• Seek unique and local content and services
• Break down service silos and leverage
  intersection of these
• Commercial bundling can reduce your offer to
  competing on price focus on integrating
  features
• Leverage usage data for advertisers mine and
  target
• Control your brand and leverage existing positive
  brand attributes
• Get crisp on your strategy for hardware/CE
  packages
• Think like a consumer!

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Discussion Points

• What are the compelling and unique services that
  are likely to score well in the model?
• How can telcos, through creative integration turn
  old cash cows into stars?
• Should telcos develop, partner or buy to deliver
  services?
• How can telcos roll out services with fast TTM
  without abdicating the brand relationship?